NSW signs disabilities deal with Gillard

Paul Osborne, AAP Senior Political Writer

Australia's most populous state has signed a long-term deal with the federal government to roll out the National Disability Insurance Scheme (NDIS), putting pressure on other states and the federal coalition to show their hands.

Prime Minister Julia Gillard and NSW Premier Barry O'Farrell announced in Canberra on Thursday that they had come to terms on the money to support disabled people, carers and their families, with more than $6 billion-a-year to be provided from 2018/19.

The federal government will contribute 51.4 per cent of the total cost of the NDIS in NSW from 2018/19 - or $3.319 billion - while NSW will put in $3.133 billion.

Ms Gillard said the almost 50/50 split represented a benchmark for deals with the other states.

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"It shows to the other states and territories that it can be done, and I am determined that it will be done," she told reporters.

Mr Farrell said the deal would help about 120,000 people in NSW - more than one-quarter of the 410,000 people nationally expected to be serviced under the NDIS.

"This agreement today demonstrates this is above politics," he said.

The prime minister said funding the federal government's share would involve "hard choices" in the budget, but she again ruled out a national Medicare-style levy.

She declined to comment on talks with Victoria, ACT, Tasmania and South Australia, all of which have already pledged to host NDIS launch sites alongside NSW from mid-2013.

Queensland and Western Australia have made no commitments.

When fully operational, the NDIS is expected to cost around $15 billion-a-year.

Opposition Leader Tony Abbott told a disability industry chiefs' forum on Monday he was a "passionate devotee" of the NDIS and a coalition government would bring about the scheme "as quickly as we reasonably can".

Coalition disabilities spokesman Mitch Fifield said on Thursday the prime minister had conceded Mr Abbott's point the commonwealth should provide the bulk of the extra funds needed for the NDIS. The NSW deal means Labor has committed almost $200 million than the state.

Senator Fifield also accused Labor of trying to politicise the NDIS, despite Mr O'Farrell's statement the NSW agreement was fair and bipartisan.

"The NDIS doesn't represent just Labor values or just Liberal values - the NDIS represents Australian values," Senator Fifield said.

Ms Gillard will discuss the NDIS, and other issues, with the state and territory leaders at the Council of Australian Governments meeting in Canberra on Friday.

She wants the leaders' support for a timetable for electricity market reform, which would include the rollout of smart meters and deregulated retail power prices to cut $250-a-year from power bills.

It's understood business lobby groups as well as energy chiefs, like Origin's Grant King and AGL Energy's Michael Fraser, argued strongly for the reforms at a COAG business advisory forum in Canberra on Thursday.

Queensland Premier Campbell Newman said he wanted to implement the scheme by its start date of 2018, but his state did not have the money now.

"We support the NDIS. We've been working behind the scenes on the NDIS with the commonwealth so we can actually implement it," Mr Newman told reporters in Canberra on Thursday.

"We've changed the law in Queensland to bring in some of the essential features of the NDIS, for example, self-directed funding.

"And I've said before that the moment we've completed the fiscal repair task ... we will put more money in and we will step up to the plate."